relationship between the future value and time if interest is compounded continuously
Not what you're looking for?
A friend, who is currently 40 years old, wants to know how much money she will have at retirement if she invests $5,250 every year in a fund that ears 8% per year.
a. List the balance on the account for the first three years of the fund if interest is compounded continuously.
b. Graph the balance on account against time and identify in your own words the relationship between the future value and time if interest is compounded continuously.
c. Compute the future value on her account if she retires at age 60 using the Fundamental Theorem of Calculus. How much additional money will she earn if she delays her retirement for one year without a contribution?
Purchase this Solution
Solution Summary
This solution provides assistance with the problems given.
Purchase this Solution
Free BrainMass Quizzes
Geometry - Real Life Application Problems
Understanding of how geometry applies to in real-world contexts
Exponential Expressions
In this quiz, you will have a chance to practice basic terminology of exponential expressions and how to evaluate them.
Probability Quiz
Some questions on probability
Graphs and Functions
This quiz helps you easily identify a function and test your understanding of ranges, domains , function inverses and transformations.
Solving quadratic inequalities
This quiz test you on how well you are familiar with solving quadratic inequalities.